South African maize futures pulled towards the close of session on Tuesday from a relatively firm start, with market players clearing positions ahead of the Crop Estimates Committee's preliminary report on area planted to the grain in the 2012 season.
The March 2012 white maize contract edged down R2 to R2,686 per ton, but May 2012 white maize gained R4 to R2,339 per ton, and July 2012 white maize shed R14 to R1,989 per ton, according to preliminary I-Net Bridge data.
The March 2012 yellow maize contract inched up 20 cents to R2,720.20 per ton, the May 2012 yellow maize contract was up R5 to R2,300 per ton and the July 2012 yellow maize contract shed R4 to R1,961 per ton.
The March wheat contract added R27 to R2,795 per ton, while May wheat lifted R28 to R2,844 per ton, and the July 2012 wheat contract was up R27 to R2,883 per ton.
“We lost upside momentum in the session owing to position squaring among local traders ahead of the report,” a local maize trader said.
Dow Jones Newswires reported that US soybean futures led a broader based rally in grain markets at Chicago Board of Trade on Monday, driven by Argentina crop worries and supportive external market influences.
Soybean prices spiked to two-week highs, rebuilding a weather premium into prices, driven by reports of lighter-than-expected rainfall in the driest crop areas of South America over weekend.
Largely, rainfall in key growing areas of Argentina fell short of anticipated levels and with hot temperatures, raised concerns about crops being stressed, said Bill Nelson, analyst with Doane Advisory Service in St. Louis.
Corn futures drew support from concerns about lost production in South America, with a recent increase in export demand and firm cash basis levels buoying the market as well.
CBOT March corn ended up 8 1/2 cents at $6.20 per bushel. - I-Net Bridge